The government has accorded the 'Maharatna' status to state-owned Power Finance Corporation (PFC), a move that will pave the way for the company's greater financial and operational efficiency, according to a company statement.
"Government of India accorded the prestigious 'Maharatna' status to state-owned Power Finance Corporation (PFC), thus giving PFC greater operational and financial autonomy," the company said in the statement.
An order to this effect was issued on Tuesday by the Department of Public Enterprises, under the Ministry of Finance.
Incorporated in 1986, PFC is the largest infrastructure finance company dedicated to the power sector under the administrative control of the Ministry of Power.
The grant of 'Maharatna' status to PFC will impart enhanced powers to PFC's board while taking financial decisions.
The Board of a 'Maharatna' CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the networth of the concerned CPSE, limited to Rs 5,000 crore in one project.
The board can also structure and implement schemes relating to personnel and human resource management and training. They can also enter into technology joint ventures or other strategic alliances.
Union Power and New & Renewable Energy Minister R K Singh congratulated and remarked that the "conferment of the 'Maharatna' status is the reflection of the government's confidence on PFC's strategic role in the overall development of the power sector and an endorsement of its sterling performance."
He added that this new recognition will enable PFC to offer competitive financing for the power sector, which will go a long way in making available affordable and reliable 'Power For All 24x7'.
PFC Chairman and Managing Director R S Dhillon said in the statement that PFC has received the 'Maharatna' status because of its exceptional financial performance during the past three years. "Despite COVID-19, PFC witnessed the highest-ever annual sanctions and disbursements to the power sector to the tune of Rs 1.66 lakh crore and Rs 88,300 crore during 2020-21, and the highest ever profit of Rs 8,444 crore in FY 2020-21."
Dhillon added that with the enhanced powers of 'Maharatna', PFC will diversify its operations to further accelerate its business growth going forward and leverage its position for achieving the government's objectives for the overall development of the power sector.
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